a$.$ What do the stated changes in inventory in each year represent $($e$.$g$.,$ the $$7\mathrm{.}6$ million in $2011)?$ Equity? What is the difference between the two?

b$.$ What were Virco's stated reasons for the change to FIFO?

c$.$ In the Annual Report for the year ended January $2010,$ Virco states the following: "Inventories are stated at the lower of cost or market. Cost is determined using the last$-$in$,$ first$-$out $("$LIFO$")$ method of valuation for the material content of inventories and the first$-$in$,$ first$-$out $("$FIFO$")$ method for labor and overhead. The Company uses LIFO as it results in a better matching of costs and revenues." What are some possible motivations behind why Virco changed to the FIFO method of accounting beyond those listed by management?